Tata group stock Trent Limited gained over 3% in intraday deals on Friday, August 29, boosted by media reports that the government has proposed to hike threshold for readymade garments attracting 5% goods and services tax (GST) rate.
Tata group stock Trent Limited gained over 3% in intraday deals on Friday, August 29, boosted by media reports that the government has proposed to hike the threshold for readymade garments, attracting 5% goods and services tax (GST) rate.
According to a report by CNBC-TV18, the government of India has floated a proposal to hike the price threshold for readymade garments, attracting 5% GST to ₹2,500 from ₹1,000 earlier, thus boosting the shares of Trent by over 3% in intraday deals today.
As a result, Trent emerged as the top-performing Nifty 50 stock. The gains came even as the Indian stock market traded on a muted note, with investors remaining on the sidelines amid the tariffs imposed by the US on Indian goods.
GST to drive consumer discretionary demand
The medium to long-term outlook for Indian retail remains structurally strong. The sector stands to gain from multiple triggers, with the GST reform booster being the latest one.
According to an Axis Securities report, the sector stands to benefit significantly from rapid formalisation, as a majority of the retail market is still unorganised, creating immense opportunity in Tier-2 and Tier-3 towns. Meanwhile, India's per-capita income of $2,200 offers substantial headroom for discretionary spending, as any incremental income beyond essentials flows toward lifestyle and premium categories, it added.
Importantly, Axis Securities believes the recent GST rate reduction is poised to boost discretionary demand, acting as a near-term tailwind.
Trent remains its top conviction buy from the sector. The brokerage has a 'Buy' rating on the stock with a target price of ₹6,160.
Trent share price trend
Shares of Trent jumped 3.35% to the day's high of ₹5,411 on the NSE. Meanwhile, on the BSE, the Tata group stock hit a high of 5410.10, an upside of 3.4% against its last closing price.
This year, Trent's share price performance has been volatile, with the Tata group stock declining 25% on a year-to-date and one-year basis. Meanwhile, it has gained 10% in the last six months.
Trent is still 35% away from its 52-week high of ₹8,345.85 touched in October last year, but has bounced back 20% from its 52-week low of ₹4,491.75 touched in April 2025.